Reliance Retail has bought a 60% stake in pharma marketplace Netmeds for about $83.2 million, it said today as India’s largest retail chain looks to expand into new categories and compete more closely with American e-commerce group Amazon.

The all-cash deal valued Netmeds, which serves 5.7 million customers in more than 670 cities and towns and online, at about $134 million. Consumers get access to more than 70,000 prescription drugs for chronic and recurring ailments as well as enhanced lifestyle drugs and thousands of non-prescription goods for wellness, health, and personal care through Netmeds.

“This investment is aligned with our commitment to provide digital access for everyone in India. The addition of Netmeds enhances Reliance Retail’s ability to provide good quality and affordable health care products and services, and also broadens its digital commerce proposition to include most daily essential needs of consumers,” said Isha Ambani, Director of Reliance Retail, in a statement.

Reliance Retail, like its sister telecom venture Jio Platforms, is a subsidiary of Reliance Industries, the most valued firm in India. Reliance Industries is run by Mukesh Ambani, Asia’s richest man.

The announcement late Tuesday evening (local time) comes days after Amazon struck a deal with NetMeds, 1mg, PharmEasy and Medlife to sell medicines online in Bangalore. It was the first time Amazon had expanded into this category, it said. The coronavirus pandemic has accelerated the adoption of telemedicine and pharma marketplaces in the country, analysts said.

Online sales of medicine in India, for which New Delhi currently does not have clear regulations, presents yet another major opportunity for Reliance Retail, which has expanded its new e-commerce venture to more than 200 cities and towns in the recent quarters.

More to follow…